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Models of oligopoly behaviour, whether the respective assumptions are realistic and examples where different models might be the most appropriate.
In this essay I am going to discuss models of oligopoly behaviour and analyse them and see whether they are realistic or not and evaluate them with certain examples where they may be most suitable.
An oligopoly is a market which consists of few firms which sell similar or homogenous products. In this essay I will also be looking at a duopoly, which is a market with two firms.
The Cournot equilibrium, this is where "a pair of output levels, one for each firm, which are such that after they are chosen neither firm, has an incentive to change its output level"1.
To easily understand the Cou…
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- Models of oligopoly behaviour, whether the respective assumptions are realistic and examples where different models might be the most appropriate.
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